8x8 Inc (EGHT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Debt Reduction

GuruFocus.com11-05

Service Revenue: $175.1 million, reflecting growth in subscription and usage on the 8x8 platform. Gross Margin: 70.2%, slightly lower than the previous quarter's 70.6%. Non-GAAP Operating Margin: ...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n8x8 Inc (EGHT) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic Debt Reduction\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-05 15:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/8x8-inc-eght-q2-2025-070902418.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Service Revenue: $175.1 million, reflecting growth in subscription and usage on the 8x8 platform.\nGross Margin: 70.2%, slightly lower than the previous quarter's 70.6%.\nNon-GAAP Operating Margin: ...</p>\n\n<a href=\"https://finance.yahoo.com/news/8x8-inc-eght-q2-2025-070902418.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"EGHT","symbol_name":"8x8 Inc","start_time":0,"source_url":"https://finance.yahoo.com/news/8x8-inc-eght-q2-2025-070902418.html","article_id":"2481540699","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Uh71r669tUwwxwx2Avlc9g--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/8402bb184648591b39983ff899a70ca5"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481540699","pubTimestamp":1730790542,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Service Revenue: $175.1 million, reflecting growth in subscription and usage on the 8x8 platform.Gross Margin: 70.2%, slightly lower than the previous quarter's 70.6%.Non-GAAP Operating Margin: 11.9%, above the high end of guidance range.Cash Flow from Operations: Positive for the 15th consecutive quarter.Debt Reduction: $25 million repaid in Q2, with an additional $33 million repaid post-quarter, reducing total debt to $369 million.R&D Investment: 15% of revenue on a non-GAAP basis.Stock-Based Compensation: 5.2% of revenue, the lowest in at least five years.Q3 Service Revenue Guidance: $171 million to $174 million.Q3 Total Revenue Guidance: $177 million to $182 million.Full Year Service Revenue Guidance: $690 million to $701 million.Full Year Total Revenue Guidance: $714 million to $727 million.Full Year Operating Margin Guidance: 10.25% to 11%.A: Kevin Kraus, CFO, noted robust platform usage revenue and growth in the core 8x8 business as key factors. Samuel Wilson, CEO, added that st","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"EGHT":"8x8 Inc"},"translate_title":"8x8 Inc(EGHT)2025年第二季度收益看涨期权亮点：强劲的收入增长和战略债务减少","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"EGHT":1},"content_text":"Service Revenue: $175.1 million, reflecting growth in subscription and usage on the 8x8 platform.\nGross Margin: 70.2%, slightly lower than the previous quarter's 70.6%.\nNon-GAAP Operating Margin: 11.9%, above the high end of guidance range.\nCash Flow from Operations: Positive for the 15th consecutive quarter.\nDebt Reduction: $25 million repaid in Q2, with an additional $33 million repaid post-quarter, reducing total debt to $369 million.\nR&D Investment: 15% of revenue on a non-GAAP basis.\nStock-Based Compensation: 5.2% of revenue, the lowest in at least five years.\nQ3 Service Revenue Guidance: $171 million to $174 million.\nQ3 Total Revenue Guidance: $177 million to $182 million.\nQ3 Operating Margin Guidance: 10% to 11%.\nFull Year Service Revenue Guidance: $690 million to $701 million.\nFull Year Total Revenue Guidance: $714 million to $727 million.\nFull Year Operating Margin Guidance: 10.25% to 11%.\nFull Year Cash Flow from Operations Guidance: $59 million to $64 million.\n\n\nWarning! GuruFocus has detected 4 Warning Signs with EGHT.\n\nRelease Date: November 04, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\n8x8 Inc (NASDAQ:EGHT) reported better-than-expected results for key financial metrics, including service and total revenue, and non-GAAP operating income.\nThe company achieved its highest single platform usage revenue day ever in early September, particularly in the Asia Pacific and European regions.\nSales of new products increased by more than 60% year over year, with AI-based solutions growing more than 200% year over year.\n8x8 Inc (NASDAQ:EGHT) has maintained positive cash flow from operations for 15 consecutive quarters.\nThe company reduced its total debt principal balance by over $173 million or 32% since the end of fiscal Q2 '23, demonstrating financial discipline and commitment to returning value to shareholders.\n\n Negative Points \n\nRevenue from customers remaining on the Fuze platform declined, representing a headwind to overall growth.\nGross margin was slightly lower than the previous quarter due to increased usage in the communication platform as a service business.\nThe company anticipates a modest decline in service revenue for the next quarter, partly due to conservatism around CPaaS visibility and potential FX fluctuations.\nThere is ongoing pressure from competitors offering aggressive pricing, which could slow down deal cycles.\nThe transition of customers from the Fuze platform to the 8x8 platform is progressing slower than desired, impacting revenue growth.\n\n Q & A Highlights \nQ: What were the key factors driving the sequential growth improvement in services revenue, and how sustainable are these trends? A: Kevin Kraus, CFO, noted robust platform usage revenue and growth in the core 8x8 business as key factors. Samuel Wilson, CEO, added that strong gross retention provided a solid foundation for growth, and they are cautiously optimistic about sustaining these trends.\nQ: What is driving the 200% year-over-year growth in AI-based solutions sales, and are customers more willing to adopt these features now? A: Samuel Wilson, CEO, explained that customers are more willing to adopt AI solutions as they now solve business problems, such as improving agent productivity and detecting fraud. The focus is on turning AI into meaningful business outcomes, which has increased customer adoption.\nQ: What could drive a return to year-on-year growth for the business, and what role does the macro environment play? A: Samuel Wilson, CEO, highlighted that growth will be driven by new products becoming a larger part of the business and the reduction of the Fuze platform's impact. The core 8x8 business is already growing, and the focus is on continuing this trend while managing the Fuze transition.\nQ: Can you explain the impact of CPaaS on gross margins and any underlying trends? A: Kevin Kraus, CFO, stated that the accelerated platform business, which has a lower margin, impacted gross margins. The underlying UCaaS and CCaaS margins remain steady. Samuel Wilson, CEO, added that new AI usage-based products might cause short-term gross margin compression as they launch.\nQ: What trends are you seeing in AI adoption, particularly regarding the number of human agents and funding for these products? A: Samuel Wilson, CEO, noted that while AI solutions like agent assists and bots are being adopted, they are not reducing the number of human agents. Instead, they enhance agent productivity and shorten training cycles, adding capabilities rather than replacing human roles.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481540699"}